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Best Auto Warranties
How Do Auto Warranties Work?

An excellent strategy to safeguard yourself from unanticipated auto repairs is to get a vehicle service contract, otherwise known as an aftermarket warranty or an extended auto warranty. However, how do these auto warranties work?
How Auto Warranties Work
Auto warranties work in many different ways. Let us first address how they are applied.
What Are Warranties Used For?
Auto warranties are essentially protective measures that are put in place to protect your car from high repair costs. Also, they usually come with other services to help people during a breakdown, such as towing and a rental car allowance.
Most people are unaware of how expensive car parts can be until they need to buy replacement parts or pay for repairs following a breakdown. You might have to spend hundreds or even thousands of dollars on new parts and repairs for your car if it does not have any coverage.
Most of these expenses, if not all of them, can be covered by an extended warranty! For this reason, we urge everyone to get an extended auto warranty as soon as possible.
How to Use a Warranty
Auto warranties work by protecting your pockets and possessions. To use your warranty to its full potential and get your money's worth, do the following:
- Create a customized coverage plan. You can do this by talking to your dealer and discussing your options.
- Choose your repair shop. Most vehicle protection plans may be used at any U.S.-based repair shop that is duly accredited. An independent repair shop, a national chain, or even a dealer are examples of valid repair shops.
- The repair shop will send the claims once you have a need for filing them. Before starting repairs, the repair shop will diagnose the car and send the results to your service provider's claim department so that they can be approved.
- Your claims will be directly paid to the repair shop you choose. Following the completion of the repair and the approval of your claim, your provider's claim department will pay the repair shop straight away. There might be a minor deductible, though, depending on the company.
- If your trip is interrupted, you could be reimbursed. Also, many warranties cover the fees of rental cars, ride-shares, and other utilities.
- If your car breaks down in the middle of the road, a warranty will provide you with roadside assistance. So, you can get affordable towing services and other types of useful features.
Why Should You Get a Warranty?
Since they do not want to pay the associated costs, some customers choose not to purchase an extended auto warranty. But most consumers are unaware that they will have to spend much, much more for repairs and replacement parts if they do not have the right coverage for their car.
We are aware of how frustrating it may be when your automobile breaks down, especially if you are stranded or pressed for time. We advise taking certain measures that can help prevent these nasty circumstances. Hence, it is always wise to invest in an auto warranty.
If you do need new components or repairs for your car, an auto warranty can help you save a lot of money. This is why having reliable coverage in place is crucial at all times since you never know what could happen. It is able to pay for a variety of expenses and contribute to some others.
So, why not take action before your automobile actually breaks down? Cars tend to break down frequently. Also, when they do break down, they can be a real pain to fix, especially if you don't have the money for new parts. To ensure that you do not run the risk of these things, you will need to take a number of precautions.
This is why purchasing an extended auto warranty is advised in order to safeguard your car and, more crucially, your pocket in the long term. Numerous options are available at affordable costs!
Common Questions About Auto Warranties
We have the answers to your questions about all that is related to auto warranties, including whether they can be transferred, whether they are still in effect if the car is sold before the warranty period is over, and more.
- What is a factory warranty?
A manufacturer's auto warranty, also known as a "factory warranty," is normally included with a new car and lasts for a few years or miles. Approximately three years or 36,000 miles of coverage is the standard.
This type of warranty usually only covers the most basic parts of the car. Extended auto warranties will, in most cases, provide much more comprehensive coverage.
- Do I need an extended auto warranty if I still have a factory warranty?
Simply put, the answer to this question is no; you do not need one. There is no urgency to purchase an extended auto warranty if you are still covered by the manufacturer. Due to the overlap of them both, you will be paying for two warranties at once. This is because your factory warranty was already paid for and built into the price of the car.
With that being said, if you would like extra coverage for parts that are not included in the factory warranty, you could look into extended warranty options. Also, if the factory warranty on your car is about to expire, you should start looking for a reputable service center to purchase an extended warranty soon.
- Can I find a car warranty with a limited budget?
There is an auto warranty for you, no matter what your budget is! You may obtain the specialized protection you require to start saving on auto repairs and components with a core coverage plan that can fit any budget. So, you do not really need to be concerned about costs in these circumstances. Spending limits should no longer prevent you from being covered when on the road.
- Even if a car is sold before the warranty period has ended, is the warranty still in effect?
No matter who the owner is, an auto warranty should normally endure until the end of its period. As it were, the majority of the time, this is the case. Car warranties are linked with the VIN, not the owner's name, which is why they are still in effect even if the vehicle is sold. It is because of this that most car warranties are typically really simple for buyers and sellers to transfer.
- Can I transfer my warranty?
In most cases, it is very easy to transfer your auto warranty. Having said that, it is crucial to be aware that some manufacturers forbid warranty transfers. Many automakers have service or mileage restrictions on their warranties.
- When should I extend my warranty?
You must bear in mind that once your initial mileage has been reached or the factory warranty period has expired, you are no longer protected and are responsible for paying for any necessary repairs or replacement parts. This would be the perfect time to extend your auto warranty, although there is no wrong time.
- What is the best auto warranty provider?
There are many companies that can provide extended auto warranties for your car at great rates. We advise you to search around and choose the best service provider that fits your needs and your budget. Below, you will find a list of some of the top auto warranty providers we have found.
Our Top Recommendations
Now that you know how auto warranties work, let us talk about the companies that we believe are some of the best out there.
CarShield Car Protection

CarShield is one of the top sellers of auto warranties in the country. You can take comfort in knowing that your vehicle will be taken care of as it will be in capable hands. CarShield only works with the most reliable in the industry.
CarShield has many services, such as 24/7 roadside assistance, towing service, rental car compensation, and more. As a major plus, the customer support at CarShield is top-notch. So, CarShield is the top choice on our list. They also sell six different plans with differing levels of coverage.
The six contracts that CarShield offers are:
- Diamond Plan
- Platinum Plan
- Gold Plan
- Silver Plan
- Aluminum Plan
- Specialty Plan
Endurance

Endurance is the second pick on our list. This is a top choice for many people. The company sells extended car warranties and has six flexible plans, too. Plus, there is no interest fee, even if you pay over the course of two years!
In addition, you can pick the repair facility that you want. Also, there is a cancellation policy as well as a money-back policy. As for the contracts, the six options are:
- Supreme
- Superior
- Secure Plus
- Secure
- Select Premier
- EnduranceAdvantage
Olive Auto Warranty

After this company rebranded in 2020, it took the industry by storm. Thus, Olive has earned a worthy spot on our top-three list.
These are the three contracts that Olive offers:
- Powertrain
- Powertrain Plus
- Complete Care
To summarize, these are the best Auto Warranties in 2023…
Endurance
- Provides coverage for high-mileage vehicles
- Excellent customer service
- ASE-certified repair facility of your choice

CarShield
- Transferable warranty
- 24/7 roadside assistance
- Choice of any certified repair facility

CARCHEX
- 24/7 roadside assistance
- Coverage up to 10 years or 250,000 miles
- You can choose any ASE-Certified repair facility

Olive Auto Warranty
- Competitive prices
- 24/7 roadside assistance
- No waiting period or inspection required

Protect My Car
- 24/7 roadside assistance
- Flexible monthly payments
- Older cars get specialized plans